Global industrial manufacturing M&A deals insights:

Q3 2016 update

Executive summary

The following is an analysis of global industrial manufacturing deals with disclosed value greater than $50 million.

Global Industrial Manufacturing M&A deal value for the first nine months of 2016 decreased 10% compared to the first nine months of 2015. This was driven by a 22% decrease in volume period over period.

When comparing Q3 2016 vs. Q2 2016 there was double digit growth in both deal value and volume. The current quarter was highlighted by 58 deals announced with a total disclosed value of $20.3 billion compared to 49 deals announced with total disclosed value of $12.3 billion in Q2, resulting in an 18% and 65% increase, respectively.

The largest deal announced in Q3 2016 was the deal between Emerson and Pentair PLC-Valves & Controls Business ($3.2 billion).

In Q3 2016, financial investor participation rates decreased to levels not seen since late 2013, with a deal value participation rate of 17% and deal volume participation rate of 21%.

The improvement in deal activity in Q3 2016 may be a sign that deal makers’ economic and geopolitical concerns, both in the US and globally, have begun to subside. We are cautiously optimistic that Q4 2016 and fiscal 2017 will continue to be a good environment for deal makers.